The Irish Farmers Journal understands that representatives from Kerry Group and a sub-committee of Kerry Co-op board are engaged in critical talks about restructuring the future relationship between Kerry Group and Kerry Co-op.

It is understood that one option under consideration is a joint venture model where Kerry Co-op would buy a shareholding in Kerry Group’s agribusiness and milk processing business as a way to resolve the “leading milk price” issue.

Since last October, Kerry Co-op and Kerry Group have been in negotiations following an arbitration ruling on the contentious milk price issue.

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Were such a joint venture to go ahead, Kerry Co-op would have some control in milk processing and setting the monthly milk price

At the moment, Kerry Co-op does not set milk price for Kerry milk suppliers and is not involved in milk processing. This is done by Kerry Group, with the co-op left to negotiate and campaign on behalf of milk suppliers.

Were such a joint venture to go ahead, Kerry Co-op would have some control in milk processing and setting the monthly milk price.

Importantly, it would also see Kerry Co-op become a trading company again, which could potentially solve its multiple problems with Revenue.

Following a Kerry Co-op board meeting on Tuesday, one farmer board member raised concerns over a potential joint venture deal.